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May 13, 2015

Deciding Which Cloud Cabin To Ride

Trends in IT management are pushing server management into co-located and cloud-based service providers. If a path toward migration seems to lead toward services rather than servers, there are some developments to note while choosing a place to relocate the apps on critical servers.

Roller cabinAmazon is the leader in the cloud computing space with its AWS business. But just until recently, the world didn't know specifics of how well AWS was earning. It turns out that cloud services are one of the few Amazon products making a generous profit. And the existence of profits goes a long way toward protecting the future of any product or service. The 3000 is supposed to have crossed over from profitable to not so during the period after Y2K.

Once the system's projected revenue line dipped below the projected expense line, at that point you could say even those inside HP considered MPE servers a dead product. It didn't happen until after that Year 2000 bubble, though. The HP 3000 owner, having experienced this, will be wary of any single point of solution failure.

AWS is well above such a line. Other companies, such as HP, are not breaking out their cloud business results. But HP is making a point of promoting its latest HP Discover conference around the cloud concept. You can even ride in a cloud, the vendor promises, next month in Vegas.

AWS owned more than 25 percent of the cloud infrastructure revenues during 2014, according to the Synergy Research Group. It's such a dominant share that the closest competitor, Microsoft, has only 10 percent, and IBM has 7. Rackspace, a preferred solution for the Charon virtual 3000 solution, comes in at 3 percent. HP's at under 1 percent, one of a host of companies who make up almost half of what's left over.

How big is cloud at AWS? Amazon said it had revenue of $1.57 billion during the first three months of the year. The company said its operating income from AWS was $265 million. Nothing that HP builds returns that kind of profit, except ink and paper.

High Roller CabinBut at the Discover show in Las Vegas, attendees can win "a VIP ride in the cloud on the High Roller with Connect and Ingram Micro on June 2, 2015. Join us as we journey 550 feet into the cloud over the beautiful Las Vegas landscape while networking and enjoying the ride."

Amazon is going to sell more than $5 billion in cloud services this year, by the company's reports. HP's still calling cloud computing "the new style of IT," and the strategy is pretty new to the IT director who's been managing local and networked servers for several decades. The Hewlett-Packard view from the clouds will include a Special Interest Group meeting for cloud computing during the June 2-4 show.

Hewlett-Packard has announced that it will spend $1 billion by the end of next year to help its customers build private cloud computing. Private clouds will need security, and they'll begin to behave more like the HP 3000 world everybody knows: management of internal resources. The difference will reside in a standard open source stack, OpenStack. It's not aimed at midsize or smaller firms. But aiding OpenStack might help open some minds about why clouds can be simple to build, as well as feature-rich.

05:31 PM in Migration, Newsmakers | Permalink

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